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Roman Drozhanskyi: “Legal entities risk to lose title of inheritance for farmlands”

INTERFAX-UKRAINEKyiv. September 18, 2012

“Legal entities, both Ukrainian and foreign, may be deprived of the right to inherit agricultural lands,” a partner of Volkov and Partners Law Firm Roman Drozhanskyi informed “Interfax-Ukraine” agency.
According
to him, a draft law No. 11128 “On amendments to the Land Code of
Ukraine concerning the purchase of title to agricultural lands” adopted
in the first reading on Tuesday, contains a significant drawback. In
particular, it suggests amending Article 82 of the Land Code with the
provision depriving legal entities of the right to inherit agricultural
land plots.
“This right will be abolished not only for foreign legal
entities (as provided for in current wording of the Land Code), but also
for agricultural enterprises, scientific and research institutes,
educational establishments, which have an ownership title for farmlands
under the Laws of Ukraine,” Roman Drozhanskyi emphasized.
However, he
noted that the key innovation under the draft law is that the title to
acquire non-agricultural lands will be gained by those Ukrainian legal
entities, which shareholders (members) are foreign individuals and legal
entities.
The Lawyer believes this innovation will enable to increase a number of prospective investors for agriculture in Ukraine.
Reportedly,
on Tuesday 233 people’s deputies voted “for” to adopt the draft law “On
amendments to the Land Code of Ukraine concerning the purchase of title
to farmlands” in the first reading registered with parliament on August
31, 2012.
The draft law is purposed to provide legal entities
established under the laws of Ukraine and foreign countries with the
possibility to purchase land plots from the state and public ownership.